How much to offer on property which needs complete refurbishment

sonub4ualt

Hi all,

We live in Birmingham and have been looking for a property nearly a year now. We have been outbid on 3 properties by either cash buyers or chain free customers.. Our current property is SSTC and hence now in chain. Thought of renting to be chainfree but have 3 kids, difficult to do school run. We are looking for a house somewhere close to both primary and secondary.

 A property came up last month which needs complete refurbishment. The owners have lived there for 40+ years and haven't done much except for minor repairs. Last month they listed it for 470k and reduced it to 450k this month.

The property is 3 bed detached house. It has 1 room converted from garage and 1 large reception. Comes with a shower and wc downstairs,a bathroom upstairs and a conservatory with standalone double brick garage. There are steps and a driveway has to be constructed.

We initially offered 405k and increased it to 430k. The estate agent says vendor is not willing anything under 440k and that's the final. 

The last sold property next door was in 2018 for 433k, which was detached except there was not a garage. The EA is pointing on the specs, by saying the property is a corner plot in the cul de sac and has detached brick garage. He also said that the house can be sold for 500k currently if all the work is done. Current value on zoopla shows as 464k and on landc 495k. We really liked the location but don't know should we accept 440k or leave it, as it definitely needs doing before moving in. 

The property needs complete refurbishment, structural report not done yet. Considering the vendor has lived for 40+ years with only minor repairs done, not sure what state the building could be. Of note, it is 1930’s build.

Looking at the current market situation, we want this property assuming repair costs to be in the range of 40-50k, what should be the best offer for property which needs complete refurbishment given listed price at 450k down from 470k within 3 weeks.

Thanks
Kumar

powerful_Rogue

Sounds like it was priced to take into account the work that needs doing.

SuseOrm

I had enough accepted on a house which tragically fell through in Stratford-upon-Avon August 2020 for 238 grand, Next door with less of a garden needing more work just sold for £285

steve866

You are already very close to the vendors requirement of £440k, so I guess you can either up your offer or wait and hope your vendor comes back and accepts £430k?

sonub4ualt

powerful_Rogue said:

Sounds like it was priced to take into account the work that needs doing.

Yes, but the repair costs have drastically gone up with the recent stamp duty exemption period. Also the prices quoted are for cosmetic repairs which were visible during our appointment, structural survey would satisfy what needs repairing and how critical is the damage. We do not want to just go by what the EA says, but also are mindful that anything could just crop up from nowhere once we buy and start repairing.

Polarkitto

40-50k for refurbs sounds high, are you replacing the roof, both bathrooms, filling in fireplaces throughout, conservatory need knocking down and redoing etc?

I'd recommend you send some pictures to tradesmen regarding whatever you think needs sorting, and use those quotes to get a realistic number for repairs/refurb to start with.

If a similar house went for 433k 4 years ago, them asking for 440k now, assuming the property isn't in total disrepair, seems like a fairly good deal. 

You're also admitting on zoopla the valuation is much higher than 440k so it's hard for you to argue 10k is make or break if it's otherwise a perfect size for your family.

What SHOULD be the best offer, is entirely subjective and even then based on a top of information we don't have. Right now the best offer is the one you're being told the owners won't go below.

sonub4ualt

Polarkitto said:

40-50k for refurbs sounds high, are you replacing the roof, both bathrooms, filling in fireplaces throughout, conservatory need knocking down and redoing etc?

I'd recommend you send some pictures to tradesmen regarding whatever you think needs sorting, and use those quotes to get a realistic number for repairs/refurb to start with.

If a similar house went for 433k 4 years ago, them asking for 440k now, assuming the property isn't in total disrepair, seems like a fairly good deal. 

You're also admitting on zoopla the valuation is much higher than 440k so it's hard for you to argue 10k is make or break if it's otherwise a perfect size for your family.

What SHOULD be the best offer, is entirely subjective and even then based on a top of information we don't have. Right now the best offer is the one you're being told the owners won't go below.

Rewiring
Change of Radiators and pipeworks
New bathroom upstairs
New W/C shower downstairs including plumbing
Guttering and fascias
Skirting board replacement
Plastering as it is wallpaper throughout all the upstairs
Tiling and flooring
New carpets on 1st floor
Roofing was never changed except for when it leaked minor repairs were carried out to fix them.
Whole new kitchen

sonub4ualt

SuseOrm said:

I had enough accepted on a house which tragically fell through in Stratford-upon-Avon August 2020 for 238 grand, Next door with less of a garden needing more work just sold for £285

Thanks @SuseOrm, how much was the property advertised for?

TheJP

sonub4ualt said:

Polarkitto said:

40-50k for refurbs sounds high, are you replacing the roof, both bathrooms, filling in fireplaces throughout, conservatory need knocking down and redoing etc?

I'd recommend you send some pictures to tradesmen regarding whatever you think needs sorting, and use those quotes to get a realistic number for repairs/refurb to start with.

If a similar house went for 433k 4 years ago, them asking for 440k now, assuming the property isn't in total disrepair, seems like a fairly good deal. 

You're also admitting on zoopla the valuation is much higher than 440k so it's hard for you to argue 10k is make or break if it's otherwise a perfect size for your family.

What SHOULD be the best offer, is entirely subjective and even then based on a top of information we don't have. Right now the best offer is the one you're being told the owners won't go below.

Rewiring
Change of Radiators and pipeworks
New bathroom upstairs
New W/C shower downstairs including plumbing
Guttering and fascias
Skirting board replacement
Plastering as it is wallpaper throughout all the upstairs
Tiling and flooring
New carpets on 1st floor
Roofing was never changed except for when it leaked minor repairs were carried out to fix them.
Whole new kitchen

That is probably around £25-35K depending on the level of quality you are willing to stretch to. The big question is bearing in mind the kids is this something that is feasible? It could take you between 3-6 months to get a trade in to do the work. 

sonub4ualt

TheJP said:

sonub4ualt said:

Polarkitto said:

40-50k for refurbs sounds high, are you replacing the roof, both bathrooms, filling in fireplaces throughout, conservatory need knocking down and redoing etc?

I'd recommend you send some pictures to tradesmen regarding whatever you think needs sorting, and use those quotes to get a realistic number for repairs/refurb to start with.

If a similar house went for 433k 4 years ago, them asking for 440k now, assuming the property isn't in total disrepair, seems like a fairly good deal. 

You're also admitting on zoopla the valuation is much higher than 440k so it's hard for you to argue 10k is make or break if it's otherwise a perfect size for your family.

What SHOULD be the best offer, is entirely subjective and even then based on a top of information we don't have. Right now the best offer is the one you're being told the owners won't go below.

Rewiring
Change of Radiators and pipeworks
New bathroom upstairs
New W/C shower downstairs including plumbing
Guttering and fascias
Skirting board replacement
Plastering as it is wallpaper throughout all the upstairs
Tiling and flooring
New carpets on 1st floor
Roofing was never changed except for when it leaked minor repairs were carried out to fix them.
Whole new kitchen

That is probably around £25-35K depending on the level of quality you are willing to stretch to. The big question is bearing in mind the kids is this something that is feasible? It could take you between 3-6 months to get a trade in to do the work. 

Kids and our family will move to my brothers place until the house gets to normal standard, at least the toilet and kitchen are redone.

powerful_Rogue

sonub4ualt said:

powerful_Rogue said:

Sounds like it was priced to take into account the work that needs doing.

Yes, but the repair costs have drastically gone up with the recent stamp duty exemption period. Also the prices quoted are for cosmetic repairs which were visible during our appointment, structural survey would satisfy what needs repairing and how critical is the damage. We do not want to just go by what the EA says, but also are mindful that anything could just crop up from nowhere once we buy and start repairing.

Are you a first time buyer by chance?